Frequent-Flier Miles: Best Airlines for Cashing In

May 15, 2013
Booking a free ticket with your frequent-flier miles can seem like casino gambling: Getting what you want is like hitting a jackpot, but more often than not, the house wins. Not all airlines offer the same odds.

Karachi, May 15 -- Booking a free ticket with your frequent-flier miles can seem like casino gambling: Getting what you want is like hitting a jackpot, but more often than not, the house wins. Not all airlines offer the same odds. Availability of award tickets at the basic mileage level on United Airlines is twice as good, for example, as on Delta Air Lines or US Airways, according to the Switchfly Reward Seat Availability Survey. The survey, to be released Thursday, found that United had seats available on 80% of the queries made. Delta and US Airways both had the lowest availability rate among the 25 airlines, at only 36.4%.

Southwest Airlines and JetBlue Airways scored best among U.S. airlines. Those two, along with other discount airlines, showed greater availability than airlines with big international networks. Southwest had seats available for every query. Southwest's AirTran Airways unit had seats available for 95% of queries, while JetBlue offered seats 88.6% of the time. The disparity in availability is "not accidental," said Jay Sorensen, president of IdeaWorksCompany, a consulting firm that conducted the study. Some airlines "consciously provide more award seats."

The survey also tested booking tickets just five to 15 days before departure in April. The chances of getting tickets were better than when booking three to seven months in advance on Delta, US Airways and American Airlines. This indicates airlines have gotten more aggressive about making unsold seats available shortly before departure to make sure planes take off full. Delta's short-term booking rate increased 35 points over the same period in 2012. Cashing in miles has been a source of long-standing frustration. Some fliers set clocks to request free tickets at midnight 331 days, or about 11 months, before departure-traditionally the moment airlines open a flight for booking-only to find no seats available on popular flights. And airlines have raised the price of award tickets by introducing higher-cost award tiers, reducing availability at the lowest award level. Overall, average award availability was about the same as last year, at 71.1%. Availability increased at discount airlines and declined at more traditional carriers with extensive international networks. "Ongoing consolidation and capacity cuts continue to squeeze reward seat availability," said Daniel Farrar, chief executive of Switchfly Inc., a technology company that provides software for loyalty programs at airlines, hotels and banks, and sponsored the study.

Travelers have an easier time getting free tickets on discount carriers in part because they generally have short flights with multiple departures each day on each route. Airlines generally make more seats available on short flights. They tend to offer intercontinental trips only once or twice a day, and they have more confidence they can sell seats to cash-paying customers rather than giving them away for miles.

Some airlines, including Southwest, are also simply answering customer demand that frequent-flier miles be easier to cash in.

"This was one of the pain points that we tried to solve with the new program," said Ryan Green, Southwest's senior director of loyalty and partnerships. Southwest's old program had limits on availability. Southwest's new program, launched in March 2011, offers an award price for any ticket available for sale. Southwest's percentage of its passenger traffic flying on awards increased to 9% in 2012, from 8.3% a year earlier, according to the company's annual 10-K filing with the Securities and Exchange Commission.

The survey found seats for a huge majority of queries across all airlines for flights under 2,500 miles: nearly 85%. But the success rate for seats dropped to only 43% for flights longer than 2,500 miles. Among carriers offering long-haul trips, Singapore Airlines was the most generous for its frequent fliers, making seats available on 94% of queries. US Airways was the stingiest with its long flights, with award seats available on only 4.3% of queries.

Air France-KLM showed the biggest improvement of any of the 25 airlines in the survey, with availability jumping 22.2 points to 77.9%. An Air France spokeswoman said that as part of an improvement program, the carrier did "indeed try to make more award seats available." Delta and US Airways have scored at the bottom for award seats all four years of the survey, though both have upped their availability. In 2010, both carriers offered seats to fewer than 13% of the IdeaWorks queries. Delta says it, like other airlines, offers all seats on planes to frequent fliers, just at higher mileage cost than the lowest redemption level, which is 25,000 miles for a domestic coach round-trip ticket Published by HT Syndication with permission from South Asian Media Network. For any query with respect to this article or any other content requirement, please contact Editor at [email protected]

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